Correlation Between Iovance Biotherapeutics and Vaxart

Can any of the company-specific risk be diversified away by investing in both Iovance Biotherapeutics and Vaxart at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Iovance Biotherapeutics and Vaxart into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Iovance Biotherapeutics and Vaxart Inc, you can compare the effects of market volatilities on Iovance Biotherapeutics and Vaxart and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Iovance Biotherapeutics with a short position of Vaxart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iovance Biotherapeutics and Vaxart.

Diversification Opportunities for Iovance Biotherapeutics and Vaxart

0.54

Correlation Coefficient

Iovance Biotherapeutics  Vaxart

Very weak diversification

The 3 months correlation between Iovance and Vaxart is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Iovance Biotherapeutics and Vaxart Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxart Inc and Iovance Biotherapeutics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Iovance Biotherapeutics are associated (or correlated) with Vaxart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaxart Inc has no effect on the direction of Iovance Biotherapeutics i.e., Iovance Biotherapeutics and Vaxart go up and down completely randomly.

Pair Corralation between Iovance Biotherapeutics and Vaxart

Given the investment horizon of 90 days Iovance Biotherapeutics is expected to under-perform the Vaxart. But the stock apears to be less risky and, when comparing its historical volatility, Iovance Biotherapeutics is 1.08 times less risky than Vaxart. The stock trades about -0.04 of its potential returns per unit of risk. The Vaxart Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  58.00  in Vaxart Inc on September 16, 2024 and sell it today you would earn a total of  1.00  from holding Vaxart Inc or generate 1.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Iovance Biotherapeutics  vs.  Vaxart Inc

Iovance Biotherapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Iovance Biotherapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Vaxart Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vaxart Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Iovance Biotherapeutics and Vaxart

The main advantage of trading using opposite Iovance Biotherapeutics and Vaxart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iovance Biotherapeutics position performs unexpectedly, Vaxart can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Vaxart will offset losses from the drop in Vaxart's long position.

The idea behind Iovance Biotherapeutics and Vaxart Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.